Every insurance provider wants your business, but how do you determine which company is best for your car insurance needs? Finding the right auto insurance requires research and careful consideration.
This guide will cover the top car insurance companies, key factors that influence auto insurance quotes, strategies for comparing and securing the best rates, and the latest average insurance rates in each state.
To secure the most affordable car insurance with the right coverage, it’s essential to compare different auto insurance companies and their rates.
Various approaches can be used to accomplish this, and each method may yield different outcomes. What worked well in the past may not necessarily be the most effective strategy today.
Here are a few methods to compare auto insurers and their rates:
- Research Individual Insurance Providers
Accessing an insurance provider’s website is usually quick and easy on a smartphone, computer, or other digital devices. By browsing their site, you can explore coverage options, request online quotes, and get an overall idea of car insurance costs. Once you’ve gathered information from one provider, you can proceed to the next to continue your research. - Consult an Insurance Agent
Insurance agents can be valuable sources of car insurance information due to their expertise. However, this doesn’t always mean you’ll receive an unbiased opinion.
For instance, an insurance agent affiliated with a specific company is likely to encourage you to purchase a policy from that provider. Since they represent the company, it’s in their best interest to promote its products, which may not necessarily help you when trying to compare multiple options.
If you consult an independent insurance agent, you’ll receive quotes from multiple companies. However, they still have financial incentives tied to selling policies from their partner providers. Even though they may not prioritize a single insurer, they may still try to persuade you to commit to a policy, even if you’re not yet ready to make a decision.
- Utilize an Auto Insurance Comparison Site
Another option is using an auto insurance comparison tool like The Zebra or QuoteWizard. These aggregator sites collect data from multiple insurance providers based on the details you provide. You can then review the various offers and compare them side by side.
How to Compare Auto Insurance Quotes
Regardless of how you obtain quotes, it’s crucial to shop around once you start receiving them. Ensure you have the necessary personal and vehicle details readily available.
Most insurance providers will require specific information such as your zip code, name, address, driver’s license number, and vehicle details, including the make, model, year, and Vehicle Identification Number (VIN).
When evaluating car insurance quotes, it’s important to compare identical coverage limits across different providers. For example, confirm that the collision coverage amount and deductible are the same for each policy. A company may seem to offer a lower rate, but if the coverage differs, the comparison isn’t fair.
To fully grasp the quote you’re provided, it’s essential to understand how car insurance works and the various types of coverage available. Here are key aspects to consider when reviewing an auto insurance policy:
- Car Insurance Deductible: The amount you pay out of pocket before your insurance coverage applies.
- Collision Coverage: Covers damages to your vehicle resulting from a car accident, whether with another vehicle, an object, or a rollover.
- Comprehensive Coverage: Protects against theft, vandalism, or damages not covered by collision insurance.
- Liability Insurance: Provides financial protection if you’re at fault in an accident. Property damage liability covers expenses for property damage, while bodily injury liability handles costs related to injuries.
- Uninsured Motorist Coverage: Offers financial protection if you’re in an accident and the other driver lacks liability insurance. Underinsured motorist coverage applies when the at-fault driver’s insurance isn’t sufficient to cover the damages.
- Personal Injury Protection (PIP): Pays for medical expenses regardless of fault. It may also cover rehabilitation costs and lost wages.
- Medical Payments Coverage: Covers medical expenses for you and your passengers, even if you’re responsible for the accident.
- Gap Insurance: Often referred to by different names, this coverage typically covers the difference between what you owe on a car loan and the actual market value of your vehicle.
- Roadside Assistance and Rental Reimbursement Coverage: Covers costs related to breakdowns, such as towing, battery jumps, flat tire changes, and more. Rental reimbursement coverage pays for a rental car while your vehicle is being repaired or replaced.
- Rideshare Insurance: Some providers offer this additional coverage for drivers who work with services like Uber and Lyft.
- New Car Replacement Coverage: If your new vehicle is totaled within a few years of purchase, this coverage pays for a replacement of the same make and model instead of reimbursing you for the depreciated value.
Depending on your preferences, you may also want to assess additional perks or benefits provided by specific insurers. Some companies offer highly rated mobile apps, while others may not.
Finally, as part of your research, be sure to check consumer insurance reviews and customer satisfaction ratings for any provider you’re considering.
You may find that customer satisfaction is an important factor in your decision. Look at an insurer’s J.D. Power and A.M. Best ratings, which evaluate customer satisfaction and financial stability.
Additionally, the National Association of Insurance Commissioners website provides extensive information on various providers.
By carefully considering these factors and comparing quotes effectively, you can make an informed decision and secure the best car insurance policy for your needs.
1. Best for Military Discounts: USAA (Tie)
Pros:
- High ratings for customer satisfaction and financial stability
- Competitive premium rates
- Various coverage options for different vehicles
Cons:
- Only available to military members and their families
USAA is tailored for active-duty military personnel, veterans, and their families, offering affordable insurance rates.
On average, members save $725 annually. USAA also provides specialized discounts such as a 15% military on-base discount and a 10% MyUSAA Legacy discount for those whose parents have a USAA policy.
2. Best for Affordable Rates: Geico (Tie)
Pros:
- Budget-friendly coverage options
- High customer service and AM Best scores
- Wide range of discounts
Cons:
- Limited in-person branch availability
Geico is known for its cost-effective plans, featuring online claim filing, 24/7 customer service, flexible payment options, and a mobile app.
3. Best for an Easy Claims Experience: Travelers
Pros:
- Strong AM Best and BBB ratings
- Several discount opportunities
Cons:
- Quotes may require going through an agent in certain states
- Some coverage options unavailable in select states
With over 165 years in the industry, Travelers uses independent agents to guide customers in choosing the best policies.
Discounts include multi-policy, safe driver, electric car, new car, and good student discounts. The IntelliDrive program rewards safe driving through a mobile app.
4. Best for Discounts: State Farm
Pros:
- Extensive list of discounts
- Large network of agents
- Highly customizable policies
Cons:
- Not available in Rhode Island or Massachusetts
- Low BBB rating
State Farm offers numerous discounts, including Steer Clear (up to 20% savings for drivers under 25 with a clean record) and a 25% discount for good students. Customers who bundle home and auto policies can save an average of $1,073 annually.
5. Best for Customer Service: Amica
Pros:
- Personalized service with in-house representatives
- Clear coverage explanations
- Many discount options
Cons:
- Some reports of slow claims processing
Amica emphasizes quality service with 24/7 claims support, online claim tracking, and a mobile app for account management.
6. Best for Bundling: Progressive
Pros:
- “Name Your Price” tool customizes policies based on budget
- AutoQuote Explorer compares competitor rates
- Snapshot rewards safe driving
Cons:
- Poor customer service reputation
Progressive offers savings through the Snapshot program, a usage-based insurance plan that helps safe drivers save an average of $231 per year.
7. Best for Low Mileage Drivers: Nationwide
Pros:
- Usage-based insurance options
- Accident forgiveness in select states
- Bundling discounts
Cons:
- Not available in all states
Nationwide’s SmartRide program rewards safe driving with discounts up to 40%. The SmartMiles® plan is a pay-per-mile option ideal for infrequent drivers.
8. Best for Teens and New Drivers: Allstate
Pros:
- Widespread availability of local agents
- TeenSMART program for young drivers
Cons:
- High number of customer complaints
Allstate offers extensive coverage options and specialized programs like teenSMART, which educates young drivers on road safety.
9. Best for Midwest Drivers: Erie Insurance
Pros:
- Unique coverage options, including pet and auto glass protection
- Strong customer reviews
Cons:
- Only available in 12 states
Erie Insurance provides unique policy perks and the ERIE Rate Lock feature, which prevents premium increases unless changes are made to the policy.
10. Best for Working with an Agent: Auto-Owners Insurance
Pros:
- Large network of independent agents
- Strong financial stability
Cons:
- Quotes require contacting an agent
- Limited to 26 states
Auto-Owners Insurance specializes in personalized service through its independent agents and offers additional benefits like accident forgiveness and rental car insurance.